Condominium Insurance Policies

This is a special form of homeowner’s insurance that was designed to meet the unique insurance requirements of owners of condominiums and cooperative apartments. A condo policy is a combination of property and liability coverages and provides protection against the financial consequences of a personal loss.

This coverage applies to the insured’s real property, which is the unit. It consists of the following:

The first category includes alterations, appliances, fixtures, and improvements that are part of the building and contained within the residence premises such as built-in appliances and cabinets, electrical fixtures, and similar items of this nature.

The second category relates to items of real property that pertain exclusively to the residence premises, such as exterior glass or trees and shrubs that may be located on a patio that is part of the residence premises.

The third category includes property that is the responsibility of the unit owner to insure under an agreement of a corporation or association of property owners. Insurance for this category of property provides coverage for any portion of the common areas of the building that the association agreement states are the insurance responsibility of the unit owner.

This coverage applies to the personal property (furniture, clothing, etc.) of the unit owner. The limit of insurance is selected by the unit owner. Some coverage is also provided on a worldwide basis for the personal property of the insured. This provides coverage for the insured when he or she is traveling. Special limits apply to some types of property, and some types of property are excluded from coverage.

Section II of the condo policy provides liability coverage for personal loss exposures. The policy provides liability coverage if a claim is made or suit is brought against an insured because of bodily injury or property damage. Coverage is provided for the named insured and members of the insured’s household who are relatives.